Will structured ETF products disrupt annuity market?

This week’s newsletter brings you an interview with Bruce Bond, founder and CEO of Innovator Capital, which has seen USD1.6 billion come through its doors since launch in August 2018. The money is coming into the firm’s structured product within an ETF format, which gives investors a capped return on the upside but a level of protection on the downside. Interviewed in the previous week, GTS’s Reggie Browne explained that these products could be used in the annuity market, a market that is worth USD3 trillion.

News came this week of BMO’s decision to close its European ETF business. With just EUR608 million in 13 ETFs, the firm clearly felt it hadn’t reached critical mass. Will consolidation be a continuing trend going forward in the ETF industry as fee pressures make it harder for firms to create and manage smaller ETFs?

We also have an interview with Goldman Sachs Asset Management’s head of the European ETF business, Peter Thompson. Thompson believes that the European ETF market is 10 years behind the US business. “We are expecting double digit growth and we see that continuing for a while,” Thompson tells Philippa Aylmer.

Finally, voting is now open for the ETF Express European Awards, in association with Morningstar. Please vote – Morningstar has pre-selected firms in each category and the winners are selected by the majority of votes.

Please follow this link to vote…

If you’re not already registered to receive our free email newsletter, please click here.

Beverly Chandler,
Managing Editor, ETFexpress

Companies in this issue
Goldman Sachs Asset Management
Innovator Capital
Pacific Global


Capital Group launches 12 new active-passive model portfolios

Capital Group, home of American Funds, has launched 12 active-passive model portfolios featuring Capital Group as the strategist. The models will be comprised of American Funds’ actively managed mutual funds and passively managed ETFs from Vanguard, Schwab, and BlackRock. As the strategist, Capital Group will select the passive ETFs in each model and manage the allocations.

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 iShares launches public listed private equity companies ETF

The iShares Listed Private Equity UCITS ETF is designed to offer investors access to large, liquid, and listed private equity companies from developed markets. The firm writes that private equity firms invest directly into or buy out private companies. Holdings in Master Limited Partnerships, which have a structure similar to limited partnerships on shares, are capped at 20 per cent. The individual holdings are weighted by market capitalisation.

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